The year 2022 closed phenomenally for the IT sector in Pakistan, witnessing several successful mergers and acquisitions. The sector made a record-breaking contribution to the economy, recording a remittance of $2.616 billion. The industry saw a 24 percent increase in revenue which was $2.108 billion in 2021.
Pakistan also hosted its 11th Bank of Future Forum which is one of the biggest banking technology conferences and the APICTA awards in December 2022 for the very first time, hosting 16 economies of the Asia Pacific region.
As we review the year, it’s clear that the technology sector is dynamic and holds great potential for Pakistan’s IT industry. The progress that has been made in recent years is encouraging, but it remains to be seen how far new ventures will go and what further advancements we can expect in 2023. However, a closer analysis provides insight into the strong potential that the IT industry holds.
Systems Ltd. Acquires NdcTech
Pakistan’s biggest IT-listed company, Systems Limited acquired a leading IT & Consulting company, NdcTech, which is a partner of Temenos, and one of the fastest-growing companies in the banking technology sector.
NdcTech is now operating as a fully owned subsidiary of Systems Limited under the same CEO, Ammara Masood. The IT company and its subsidiary also won several global recognitions in 2022. Systems Limited was granted Forbes Asia’s Best Under A Billion award for the third time in a row, while NdcTech won the best channel/platform implementation award at IBS Intelligence Global Fintech Innovation Awards 2022.
The acquisition of NdcTech by Systems Limited has enhanced the synergy of both companies allowing them to leverage the strengths of each other to develop advanced capabilities for banks and FIs. Furthermore, it has enabled NdcTech to extend its footprint into newer, untapped markets in the Middle East, Africa, APAC, & European regions.
10Pearls Acquires Digital and Software Companies
10Pearls, one of Pakistan’s leading IT companies, acquired two IT setups in 2022 including Whiz, a Peru-based software development company, and Pixel506, a Brooklyn-born, Costa Rica-based digital agency. Whiz is a high-growth software development company focused on providing agile software development, innovation services, and technology talent to customers in North America.
Pixel506 is a digital innovation agency focused on strategy, customer experience, user interface design, and software development. 10Pearls strengthened its presence in the North American market with a different portfolio of services.
US-based DigitalOcean Holdings Inc. Acquires Web Hosting Firm
US-based cloud services provider DigitalOcean Holdings Inc. acquired Cloudways, a Pakistani web-hosting firm, for $350 million. This is one of the biggest acquisitions by the value of a Pakistani startup by an American firm. It will be streamlining processes of digital development for small and medium enterprises.
Swiss company buys Pakistani Fintech Operator
A Swiss company ZoodPay made a 100 percent acquisition of a Pakistani fintech, Tez Financial Services (Tez). ZoodPay is a digital lending platform for e-commerce in the Middle East and Central Asia.
According to experts, the company is positioning itself as a key new player in the digital lending and fintech industry in Pakistan through this acquisition. ZoodPay has raised $50 million to date, with participation from leading global and strategic investors including Zain, the leading MENA-based telecom entity, and London-based VC Fund Sturgeon Capital.
PostEx acquires Call Courier
PostEx, a fintech operator, acquired Call Courier, a logistics service provider to expand its logistics offering making it the largest e-commerce service provider in the country. This deal created a strong synergy of PostEx’s upfront payments, revenue-based financing, and technology with Call Courier’s nationwide logistics infrastructure. PostEx has expanded its outreach with 1.3 million users with over 8,000 merchants across 500 cities in Pakistan. Its monthly loan book has surged over to $12 million.
The economy of Pakistan is confronted with the toughest of challenges in the present hour and the IT industry seems to be a beacon of hope. The acquisition of IT companies and fintech operators reflects well on business potential in Pakistan. There is some great Foreign Direct Investment (FDI) rolling in, enhancing the intrinsic potential of the companies and the confidence of international economies to look at Pakistan’s IT industry as a sound investment.